‘Send Money’ option added to Gmail and Google Wallet [video]

Over at the Google Commerce Blog, there’s a new option being shown off, and it’s pretty cool. Google has added the ability for users to send money via Gmail and Google Wallet to other users, as well as to receive payments in the same manner. The option is going to be incorporated into Gmail the same way you attach anything else – you’ll see a money icon, and you can then send money, free of charge, as long as you have a bank account connected to your Google Wallet. Even cooler? The recipient doesn’t even have to be using a Gmail address. There will be a small transaction fee if the money is sent by an attached credit or debit card, however, and the fees will be clearly noted to users. Check out the video below:

You’ll be able to do this over the coming months as the ability rolls out to Gmail users for U.S. residents over 18. The option won’t be available on mobile via the official Gmail app, but will be able to be done via the Google Wallet mobile site.

I was chatting with a Wallet rep over in their sandbox at IO. I’m not sure it’s quite so easy yet. Although the video says the recipient does not need a gmail account, the rep said otherwise. Not only that, if you do send money, the recipient will have to sign up for a Wallet account if they don’t already have one. This is going to highly confuse my mother if I send her money.

But here’s the big kicker. As of right now, even if you attach your bank account to Wallet, you cannot deposit funds that you’ve received from someone else into your bank account. You also can’t use those funds in another Wallet silo (Play store, for example). So basically the only thing you can do right now with received funds, is send those funds to someone else via gmail.

I’m left wondering what the purpose of this new feature is. At least in what appears to be a beta phase.